Expert: What postal increases mean for SMBs

This month, the USPS raised shipping costs, including a 4% increase on domestic rates. What does this rate hike mean in the short-term for small businesses?

Jeff Crouse, Vice President at Pitney Bowes. : Quite simply it means that shipping and mailing costs will increase for businesses in the short term. However, businesses that take advantage of metering technology for their mail will enjoy a rate decrease for First-Class Mail to $0.46. Compared to the new non-metered rate of $0.49, that represents a $0.03 discount per piece – a significant savings for businesses of all sizes.

The good news is that new multi-carrier shipping solutions can help businesses better manage their shipping and reduce costs. If you know what you should be sending with the USPS, UPS and FedEx you can take all the information and you can lower your costs, but you have to take a close look at what you’re spending with what carrier in order to really optimize what you’re spending.

Just because rates are going up doesn’t mean businesses can’t maximize their sending to actually decrease the amount they’re spending on mailing and shipping.

Kristina: Is this an indicator that SMBs should look into meter technology?

Crouse: The best way to cut your mailing costs, to even below 2016 rates, is to meter your mail. Businesses using metered mail will enjoy a rate decrease for First-Class Mail to $0.46. Compared to the new non-metered rate of $0.49, that represents a $0.03 discount per piece – a significant savings for businesses of all sizes. In addition to the discount, metering your mail has a host of additional benefits that can help you enhance productivity and simplify your shipping, including getting always-accurate weight and postage rates, automatic rate updates, auto ink replenishing, etc. It also eliminates trips to the post office so you can focus on your core business.

More from Crouse and Pitney Bowes later this week, including how to best mitigate shipping cost increases.